Islamabad: The Competition Commission of Pakistan has cleared the acquisition of shares in Pakistan Corporate Restructuring Company Limited by United Ethanol Industries Limited, a move expected to strengthen investment in the country's growing market for distressed assets.

The approval followed a Phase-I review conducted under the Competition Act, 2010. The deal involves United Ethanol acquiring ordinary shares in PCRCL from eight commercial banks, including UBL, MCB Bank, Allied Bank, Meezan Bank, HBL, Habib Metropolitan Bank, Bank AL Habib and Bank Alfalah, Business Recorder reported.

PCRCL is licensed by the Securities and Exchange Commission of Pakistan and focuses on acquiring, managing and resolving non-performing assets, along with restructuring financially stressed businesses.

Market observers note that the restructuring segment is gaining importance as parts of the corporate and banking sectors face rising financial stress, increasing the need for recovery and turnaround mechanisms.

United Ethanol, which operates in the ethanol and industrial products segment, produces fuel-grade and industrial-grade ethanol using agricultural raw materials.

According to the Commission's assessment, the transaction is classified as a conglomerate merger since both entities operate in unrelated sectors with no direct overlap. The CCP concluded that the deal is unlikely to reduce competition, create barriers to entry or strengthen any dominant position in the market.

The Commission identified the relevant market as services related to resolving non-performing assets and providing restructuring support within Pakistan. It also noted that while PCRCL was the first entity licensed under the Corporate Restructuring Companies Act, 2016, its activity in the non-performing loan segment has remained limited so far.